Why the Country Turned Away from Its Craving for the Pizza Hut Chain
In the past, the popular pizza chain was the go-to for groups and loved ones to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.
However not as many customers are frequenting the brand these days, and it is reducing a significant portion of its British locations after being bought out of administration for the second time this calendar year.
I remember going Pizza Hut when I was a child,â explains one London shopper. âIt was like a family thing, you'd go on a Sunday â turn it into an event.â But now, as a young adult, she says âit's not a thing anymore.â
For 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the seventies are now not-so-hot.
âThe way they do their buffet and their salad bar, it feels like they are cutting corners and have reduced quality... They're giving away so much food and you're like âHow is that possible?ââ
As grocery costs have risen sharply, Pizza Hut's unlimited dining format has become quite costly to run. The same goes for its restaurants, which are being sliced from 132 to just over 60.
The chain, similar to other firms, has also faced its costs increase. Earlier this year, labor expenses jumped due to increases in the legal wage floor and an rise in employer social security payments.
A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date âoccasionallyâ, but now they choose another pizza brand and think Pizza Hut is âvery overpricedâ.
Based on your selection, Pizza Hut and Domino's rates are similar, says a culinary author.
While Pizza Hut has pickup and delivery through external services, it is losing out to larger chains which solely cater to the delivery sector.
âDomino's has taken over the delivery market thanks to intensive advertising and ongoing discounts that make consumers feel like they're saving money, when in reality the base costs are quite high,â explains the specialist.
However for Chris and Joanne it is worth it to get their date night sent directly.
âWe predominantly have meals at home now instead of we eat out,â says Joanne, echoing current figures that show a decrease in people visiting quick-service eateries.
Over the summer, quick-service eateries saw a notable decrease in customers compared to the year before.
There is also another rival to ordered-in pies: the supermarket pizza.
A hospitality expert, senior partner at a major consultancy, explains that not only have retailers been offering premium ready-to-bake pizzas for quite a while â some are even selling countertop ovens.
âEvolving preferences are also contributing in the success of casual eateries,â states the analyst.
The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he notes.
Because people visit restaurants not as often, they may seek out a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more dated than upmarket.
The rise of high-quality pizzeriasâ over the last several years, such as popular brands, has âdramatically shifted the general opinion of what quality pizza is,â notes the food expert.
âA crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,â she says.
âWhat person would spend ÂŁ17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
âIt's a no-brainer.â
An independent operator, who operates Smokey Deez based in Suffolk says: âPeople havenât stopped liking pizza â they just want higher quality at a fair price.â
He says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with new customer habits.
According to a small pizza brand in Bristol, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.
âYou now have slice concepts, regional varieties, New Haven-style, artisan base, wood-fired, Detroit â it's a heavenly minefield for a pizza-loving consumer to try.â
He says Pizza Hut âneeds to reinvent itselfâ as newer generations don't have any sense of nostalgia or attachment to the chain.
Over time, Pizza Hut's market has been fragmented and distributed to its trendier, more nimble rivals. To keep up its high labor and location costs, it would have to raise prices â which experts say is tough at a time when family finances are tightening.
A senior executive of Pizza Hut's global operations said the rescue aimed âto protect our guest experience and retain staff where possibleâ.
He said its first focus was to continue operating at the open outlets and takeaway hubs and to assist staff through the change.
Yet with so much money going into maintaining its outlets, it probably cannot to allocate significant resources in its off-premise division because the industry is âcomplex and using existing external services comes at a priceâ, experts say.
But, he adds, reducing expenses by exiting competitive urban areas could be a good way to adjust.